Measuring and analyzing the effect of the exchange rate on the money demand in Iraq during the period (1990- 2022)

The research aims to find out the effect of the exchange rate on the money demand in Iraq for the period (1990-2022) based on annual data for the research variables. A standard model has been estimated to determine the relationship between the variables by using the (ARDL) model . The results proved that the exchange rate has a negative impact on the demand for money. The results also showed that the official exchange rate is significant in the short-term period, but its effect is weak and insignificant in the long-term period. As for the exchange rate in the parallel market, it has a greater impact on the money demand in the short and long term compared to the official exchange rate.Accordingly, a set of proposals were presented, including the necessity of taking into account the determinants of the money demand, including the exchange rate, when formulating monetary policy. In addition to the need to conduct more applied studies on the behavior of monetary demand for economic units in light of economic and regional developments in order to reach a state of economic stability.